Decline in retail stores slows across Midlands - report

More than 1,500 shops disappeared from Midlands retail locations in the first half of 2021 - although the number of closures did fall from the previous year.

In total, 601 shops opened across the region, compared to 1,511 closures, creatin a net decline of 910.

The number of closures fell from 1,799 in H1 of 2020, according to PwC research compiled by the Local Data Company (LDC).

The overall net closure rate for the Midlands fell by 86 (8 per cent) lower than it was at the same point last year, despite some well-known high street fashion and department stores exiting the market in early 2021.

Government support, in particular extended furlough and business rates relief until June 2021, have enabled operators to stay in business.

In addition, a rent moratorium has prevented landlords from evicting operators due to non-payment of rent or arrears.

These measures have allowed stores to continue trading even where sites have been particularly hard hit by successive lockdowns.

Nationally, around 8,700 chain stores disappeared from Great Britain 's retail locations in the first six months of the year.

Sarah Phillips (pictured), PwC partner and consumer markets lead for the Midlands, said: “After an acceleration in store closures last year coupled with last minute Christmas tier restrictions and lockdowns extending into 2021, we might have expected a higher number of store closures this year.

“Government support has proved to be the lifeline for many to weather the storm and survive the pandemic. The fate of many operators has also been helped by resilience in consumer spending, including investment in the home through lockdown and using enforced lockdowns savings for 'revenge spending ' when possible.

“However, operators are far from out of the woods and the next six months will be a make or break for many chains, particularly with the reinstatement of full business rates for all but the smallest operators, the winding-down of furlough support and agreement yet to be reached between many operators and landlords on rent arrears.

“There is also continued uncertainty for hospitality businesses who will be apprehensive of further restrictions on operating and the possible requirement for vaccine passports later in the year.

“But the good news is that there are some green shoots of optimism. Consumers still want a physical shopping experience and a number of chain stores and restaurants are opening.

“There is opportunity for operators who can be nimble, taking advantage of the current situation to either open new stores or to move stores to better locations. ”